1. ITIL Foundation Course V1
ITIL Foundation Course V1.0 Introduction to the IT Infrastructure Library
Capacity Management

2. Unit 11 Capacity Management
Content:
Capacity Management – objectives and overview
Responsibilities and obligations
Important aspects
Capacity planning
Capacity Database (CDB)
Benefits, risks, costs
Best practices
Summary

3. Capacity Management Integration into the IPW Model
Source: IPW Model is a trade mark of Quint Wellington and KPN Telecoms

4. Capacity Management Mission Statement
Capacity Management is responsible for ensuring that the capacity of the IT infrastructure matches the evolving demands of the business in the most cost-effective and timely manner.
Capacity Management needs to understand the business requirements (the required provision of IT services), the organization's operation (the current provision of IT services), and the IT infrastructure (the means of provision of IT services), and to ensure that all the current and future capacity and performance aspects of the business requirements are provided cost-effectively.
However, Capacity Management is also about understanding the potential for service provision. New technology needs to be understood and, if appropriate, used to deliver the services required by the business. Capacity Management needs to recognize that the rate of technological change will probably increase and that new technology should be harnessed to ensure that the IT services continue to satisfy changing business expectations. One of the result of the activities of Capacity Management is a documented capacity plan.
The goal of Capacity Management:
Ensure
required, acceptable,
cost-effective capacity
of IT resources, in order that the service levels which are agreed with the company are fulfilled in a timely manner.

5. Capacity Management Why Capacity Management?
There are a number of reasons why an organization should implement Capacity Management.
Capacity Management provides the required information about:
Which components need to be upgraded (such as main memory, faster hard disk, larger bandwidth)
When to perform upgrades – not too early, otherwise expensive overcapacities cannot be used; and not too late, in order to avoid bottlenecks, bad performance, and consequently, customer dissatisfaction
How much the upgrade will be – planning elements and predictions will influence budget planning
Capacity management is based on:
Business requirements
Existing structures of the company
Existing IT infrastructure
The customer does not require capacity; the customer requires services
The expenditure for IT capacities needs to be continuously justifiable
It provides information on current and planned resource utilization of individual components, allowing decisions on which components to upgrade, when to do so, and how much it will cost.

6. Capacity Management Capacity Management has three sub-processes
Demand Management
Business Capacity Management
Service Capacity Management
Resource Capacity Management
Capacity Plan
Capacity
Database
Iterative activities
(Performance Mgmt)

7. Capacity Management Tasks
Demand Management
Business Capacity Management
Service Capacity Management
Analyze
Iterative Activities
Resource Capacity Management
Capacity Database (CDB)
Capacity Management
Tuning
Implementation
Monitoring
Application Sizing

8. Capacity Management Input & Output
Technologies
SLAs, SLRs, and service portfolio
Business plans and strategies
Maintenance windows
Employment and development plans and programmes
Planning of future changes
Incidents and problems
Service reviews
SLA violation
Financial plans
Budgets
Capacity plans
CDB
Minimum requirements and profiles
Threshold values and signals
Capacity reports (regular, ad hoc, and in special cases)
SLA and SLR recommendations
Costs and recommendations for further calculations
Proactive changes and service improvements
Revised maintenance windows
Effectiveness review
Audit reports
SUB-PROCESS
Business Capacity Management
Trend, forecast, model, prototype, size, and documentation
of future business requirements
Service Capacity Management
Monitor, analyze, tune, and report on service performance; establish baselines and profiles of use of services
Manage demand for service
Resource Capacity Management
Monitor, analyze, and report on utilization of components,
Establish baselines and profiles on use of components
INPUT
OUTPUT

9. Capacity Management Iterative Activities
A number of the activities of Capacity Management need to be carried out iteratively, and form a natural cycle:
Set up and maintain the Capacity Database
Reporting
Analyzes and reports
Production of the capacity plan
Demand Management and Monitoring
Ensure that the future business requirements for IT services are considered
Report on performance against targets contained in SLA
Monitoring of resources
Forecast future capacity requirements
Document costs associated with options
Assess new technology and its relevance
Tuning
Implementation
Monitoring
Analysis
SLM Exception
Reports
Capacity
Management
Database
(CDB)
Resource Utilization
Exception Reports
SLM Thresholds
Resource
Utilization
Thresholds

10. Capacity Management Capacity Plan
The Capacity Plan should be published annually in line with the budgetary cycle. Ideally, it should be updated quarterly, and consists of the following parts:
Introduction
Scope of planning
Methods
Assumptions and prerequisites
Management summary
Business evaluations and scenarios
Service summary
Resource summary
Options for service improvement
Cost model
Recommendations
Business benefit to expect
Potential impact (of not) carrying out recommendations; risks involved
Required resources
Costs: unique and ongoing

11. Capacity Management Capacity Database
Capacity Database (CDB)
Data in the CDB is stored and used by all the sub-processes of Capacity Management because it is a repository that holds a number of different types of data: business, service, technical, financial, and utilization data.
The CDB is unlikely to be a single database, and probably exists in several physical locations.
The information in the CDB is used to form the basis of performance and Capacity Management reports that are to be delivered to management and technical personnel.
The data is also utilized to generate future capacity forecasts, and to allow Capacity Management to plan for future capacity requirements.

12. Capacity Management Benefits and Costs
Reduced risk of performance problems and failure
Cost savings
Both achievable through:
Planned buying
Deferring expenditure until really needed (but in a controlled way)
Matching capacity to business need
Ensures that systems have sufficient capacity to run the applications required by the business for the foreseeable future
Provides information on current and planned resource utilization of individual components allowing decisions on which components to upgrade, when to do so, and how much it will cost.
Costs
Setting up Capacity Management:
Procurement of required hardware and software, such as monitoring tools
Project management
Staff costs
Accommodation
Daily management of Capacity Management:
Annual maintenance and upgrades
Ongoing staff costs
Recurring accommodation costs (leasing, rental, energy)
“Planned buying is cheaper than panic buying.”

13. Capacity Management Risks
Potential problem areas:
Customer expectations exceed technical capability
Unrealistic product information from vendor
Wrong estimation of future workload by the customer
Precise predictions become more difficult with shorter business planning cycles
Considering all service areas (software, PC, server, LAN, WAN, TK, and so on) within the scope of capacity management

14. Capacity Management Best Practices
The Capacity Management process should be reviewed for effectiveness and efficiency at regular intervals to ensure that:
It is producing the required output at the required times for the appropriate audience
Its activities are cost-effective
Critical Success Factors
Success in Capacity Management is dependent on a number of factors:
Accurate business forecasts
Knowledge of IT strategy and plans, and that the plans are accurate
An understanding of current and future technologies
An ability to demonstrate cost-effectiveness
Interaction with other effective Service Management processes
An ability to plan and implement the appropriate IT capacity to match business needs

15. Capacity Management Summary
The goal of Capacity Management is to ensure that all the current and future capacity and performance aspects of the business requirements are provided in a timely and cost-effective manner.
Responsibilities: Business Capacity Management, Service Capacity Management, Resource Capacity Management
Demand Management
Capacity Plan and Capacity Database (CDB)
“Good Capacity Management ensures NO SURPRISES!”